Business

EU “Rescue Fund” of €672.5 Billion

EP President David Sassoli, EU Mandate President, Portuguese Prime Minister Antonio Costa, and EU Commission President Ursula von der Leyen attended the signing ceremony at the European Parliament (EP ) due to the enactment of the “Opportunity for Recovery and Resilience” fund.

Related Articles

Speaking at the press conference held after the ceremony, Von der Leyen said that he is satisfied with the completion of the legal arrangement.

Noting that the rescue program conveyed a message of solidarity and confidence in the EU, Von der Leyen said: “We must join forces because no member country can overcome this crisis alone.”

Von der Leyen explained that the fund they prepared to overcome the economic crisis caused by the epidemic is the most important element of the rescue package of 750,000 million euros called “Next Generation EU”, and that it will support companies and employment affected by the epidemic.

Recalling that within the scope of the rescue fund, the EU Commission will collect resources in the capital markets and transform them into investments at European level in line with digital transformation and climate goals, Von der Leyen noted that after this stage , EU member countries should quickly approved the equity decision required to establish the fund and noted the importance of member states preparing national plans to benefit from funding.

“Our goal is to distribute the first part of the funds to the member countries by mid-year,” said Von der Leyen.

ABOUT THE FUND

The EU Commission offered to establish a 750 billion euro rescue package to combat the economic consequences of the epidemic in May, and after lengthy negotiations, EU member countries agreed on the package in December.

The most important element in the € 750 billion package called “Next Generation AB” is the € 672.5 billion rescue fund.

For the fund, the EU Commission will take loans from the capital markets with the guarantee of the member countries.

The Commission will distribute € 360 billion in loans and € 312.5 billion in grants to EU countries.

Within the scope of the package, € 77.5 billion will be transferred to other development-oriented EU programs.

After this stage, the EU Commission must approve the decision of the Member States to increase the capital they contribute to the EU budget to obtain loans from the capital markets.

Leave a Reply

Your email address will not be published. Required fields are marked *